June 3, 2016 Comments Off on The Staples-Office Depot Merger – Or Not Views: 630 Connect Classroom

The Staples-Office Depot Merger – Or Not

Connect Retail is our weekly column on the sector, authored by veteran CRE writer Ian Ritter.

Here is what we know right now. The CEO of Staples, the largest office-supplies company in the country, quit because the potential merger with Office Depot did not pan out.

Ron Sargent had been the chief executive officer of the company since 2002.

Now, in the midst of the failed merger, there is news that Walmart is offering an office-supplies delivery business; this spells bad news for both of the specialty chains.

The potential Staples-Office Depot merger would likely have given both chains more buying power, and ability to compete with the larger mass-merchandising retailers, such as Walmart, Target, and even drug stores.

The failed merger between the two office-supplies giants, due to FTC regulations, is also bad news for the retail real estate industry. Specialty big-box retailers, the likes of Best Buy, and others, are facing serious problems. People can literally shop anywhere nowadays for office supplies or electronic devices. And if they don’t feel like shopping in stores, customers can go online to find what they need.

How do you feel about the the Staples CEO resigning and the fate of specialty retailers?

 

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